<p>The Reserve Bank on Thursday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters.</p>.<p>Exporters get the subsidy under the ‘Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit’. Earlier in April, the scheme was extended till June 30.</p>.<p>"Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to September 30, 2021," the RBI said in a circular.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/economy-business/economic-activity-recovering-since-late-may-rising-cyber-attacks-a-risk-rbi-governor-shaktikanta-das-1003691.html" target="_blank">Economic activity recovering since late-May, rising cyber attacks a risk: RBI Governor </a></strong></p>.<p>The extension takes effect from July 1, 2021, and ends on September 30, 2021, covering three months.</p>.<p>Consequently, the extant operational instructions issued by the Reserve Bank of India will continue to remain in force up to September 30, 2021.</p>.<p>In November 2018, the interest subsidy was increased to 5 per cent from 3 per cent to boost MSME sector exports. Later, the government included other merchant exporters too under the scheme and allowed them interest equalisation at the rate of 3 per cent on credit for the export of certain products.</p>.<p>Commenting on the extension of the scheme, the Federation of Indian Export Organisations (FIEO) President A Sakthivel said the timely extension will provide competitive rates for exports and bring it near international benchmarks particularly for MSMEs.</p>.<p>FIEO also requested the government to provide stability of the scheme by extending it for 3 years.</p>.<p>India's merchandise exports in May were $32.27 billion, as compared to $19.05 billion in the year-ago period, exhibiting a growth of 69.35 per cent.</p>
<p>The Reserve Bank on Thursday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters.</p>.<p>Exporters get the subsidy under the ‘Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit’. Earlier in April, the scheme was extended till June 30.</p>.<p>"Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to September 30, 2021," the RBI said in a circular.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/economy-business/economic-activity-recovering-since-late-may-rising-cyber-attacks-a-risk-rbi-governor-shaktikanta-das-1003691.html" target="_blank">Economic activity recovering since late-May, rising cyber attacks a risk: RBI Governor </a></strong></p>.<p>The extension takes effect from July 1, 2021, and ends on September 30, 2021, covering three months.</p>.<p>Consequently, the extant operational instructions issued by the Reserve Bank of India will continue to remain in force up to September 30, 2021.</p>.<p>In November 2018, the interest subsidy was increased to 5 per cent from 3 per cent to boost MSME sector exports. Later, the government included other merchant exporters too under the scheme and allowed them interest equalisation at the rate of 3 per cent on credit for the export of certain products.</p>.<p>Commenting on the extension of the scheme, the Federation of Indian Export Organisations (FIEO) President A Sakthivel said the timely extension will provide competitive rates for exports and bring it near international benchmarks particularly for MSMEs.</p>.<p>FIEO also requested the government to provide stability of the scheme by extending it for 3 years.</p>.<p>India's merchandise exports in May were $32.27 billion, as compared to $19.05 billion in the year-ago period, exhibiting a growth of 69.35 per cent.</p>